The Impact of Big Data Analytics in the South African Retail Industry

Abstract

The utilisation of big data analytics has emerged as a promising way for companies to improve their performance, and more retailers are adopting this technology to enhance their customer service and competitive abilities. Despite the extensive exploration of the impact of big data analytics within the global retail context, a noticeable research gap exists with regard to its specific utilization by South African retailers to improve their competitiveness. The purpose of this study was to assess the impact of big data analytics in the South African industry. The research design employed in this study is qualitative; the data collection was done through semi-structured interviews with two South African retail organisations. The data was analysed using the thematic-analysis process to formulate codes and themes emerging from the study. The study's findings revealed that the adoption of big data analytics in the South African retail industry is limited. However, those retailers leveraging this technology are gaining notable benefits, such as a better understanding of customers, effective inventory management, strategic pricing, and accurate forecasting. Conversely, challenges encountered by South African retailers in implementing big data analytics include insufficient skills, poor infrastructure, cost, and lack of support from top management. The study's implications underscore the critical role of skill development, data utilization, infrastructure, and leadership support in successful big data analytics implementation within the South African retail sector. These findings provide a comprehensive framework for navigating the complexities of data-driven decision-making, offering valuable guidance for strategic investments and sustained competitiveness in an evolving technological landscape.